Management 3000 - Guhde Test 3 Study Materials

human resource management (hrm)

- the process of managing an organization's employees

- includes all aspects of people management to effectively meet an organization's goals

- drives organizational performance

human capital

- the economic value of the combined knowledge, experience, skills, and capabilities of employees

- Drucker stated our economy has shifted from a dependence on workers who do manual labor to knowledge workers

- drives competitive advantage

hrm strategic issues for managers

- hiring the right people to become more competitive on a global basis

- hiring the right people for improving quality, innovation, and customer service

- knowing the right people to retain after mergers, acquisitions, or downsizing

employment law

- laws ensure equal opportunity, stop discrimination, and define government enforcement agencies

- hrm department is responsible for employment law compliance

discrimination (in relation to employment law)

- hiring or promoting applicants based on criteria that are not job relevant and is illegal by law (law identifies which groups are protected)

affirmative action

- requires employers to take positive steps to guarantee equal employment opportunities for people within protected groups

equal employment opportunity commission (eeoc)

- created by the federal government to assist organizations and employees in the understanding and enforcement of employment law

- employment law exists at federal, state, and local government levels

equal pay act (1963)

- cannot discriminate in pay based on sex

title vii, civil rights act (1964)

- prohibits discrimination in employment based on race, color, religion, sex, or national origin

- created the eeoc

age discrimination in employment act (1967)

- prohibits discrimination based on age (40 yrs and above)

americans with disabilities act (1990)

- prohibits discrimination against qualified disabled people and must provide reasonable accommodations

- does not include pyromaniacs

occupational safety and health act (1970)

- established mandatory safety and health standards in organizations

family and medical leave act (1993)

- employers must provide up to 12 weeks of unpaid leave for childbirth, adoption, or personal/family emergencies

patient protection and affordable care act (2010)

- employers required to provide health insurance or pay a fee

- requires preexisting conditions to be covered

new social contract between employer and employee

- employees used to stay in same job at same company for their entire career

- loyalty was rewarded by offering job stability, a decent wage, and benefits

- today's workforce is more mobile, less loyal, and more diverse and shaped by the gig economy or the "1099 economy"

human resource planning

- the forecasting of HR needs

- what new technologies are emerging and how will these affect the work system and employees needed?

- how is the volume of the business likely to change in the next five to ten years?

- what is the employee turnover rate?

matching model

- match between what the organization has to offer and the needs of the individual

- jobs characterized by requirement and rewards

- individuals characterized by qualifications (ksaos) and motivation

recruiting

- activity of identifying or soliciting individuals from within or outside the organization to fill job vacancies or staff for growth

job analysis (how recruiting begins)

- systematic process of gathering and interpreting information about the essential duties, tasks, responsibilities, and context of the job in addition to needed knowledge, skills, and abilities

job description (output of job analysis)

- documentation of tasks, duties, and responsibilities of a job

- used to identify a qualified applicant and to inform them of the requirements of the job

job posting

- official advertisement of job openings to inform job seekers of opportunities

selection

- process employers use to assess applicant to determine the fit between them and the job

- most frequently used selection devices are application forms, interviews, and employment tests

virtual recruitment

- 60% of recruiters use video technology in the interview process now

- one way video interview platforms where applicants record their answers to questions on the screen

- save time for both companies and candidates

- help eliminate human bias

structured interview

- set of standardized questions that are asked of every applicant so comparisons can easily be made

unstructured interview

- interviewer asks questions as they come to mind

- candidates asked different questions making it nearly impossible to fairly compare one candidate to another

behavioral questions

- ask candidates to describe how they have performed (behaved) a certain task or handled a problem in the past

situational questions

- ask candidates how they would behave in a particular situation

employment tests

- include cognitive ability tests, physical ability tests, personality inventories, and other assessments

background check

- search a candidate's background such as criminal record, credit history, and other indicators of honesty, integrity, and stability

training

- teaching employees the skills, abilities, and knowledge to perform current job

- on-the-job training

development

- developing employees for future promotions

- 50% of opening are filled internally

performance appraisal

- observing and evaluating employee performance, recording assessments, and providing feedback

- performed annually

- results used in promotion and pay raise decisions

compensation

- all direct and indirect financial payments plus all awards given to employees

- pay options include hourly (entitled to overtime) or salary

- pay-for-performance vs across-the-board pay increase

benefits

- some required by law such as social security, unemployment compensation, workers' compensation, and health insurance

- additional benefits offered to attract and maintain an effective workforce include vacation, holidays, retirement, educational reimbursement, etc.

termination

- valuable in maintaining an effective workforce

- poorly performing employees are dismissed

- exit interviews can be used to learn about dissatisfaction and reason for departure

diversity

- presence of differences within a given setting

- includes differences in race, ethnicity, gender identity, age, etc. in the workplace

inclusion

- practice of ensuring that people feel a sense of belonging and support from the organization

managing diversity and inclusion

- creating a climate in which potential advantages of diversity for organizational or group performance are maximized while potential disadvantages are minimized

workplace diversity challenges

- language barrier

- different communication styles

- us-and-them mentality

- cultural misunderstandings

- discrimination between employees

- difficulty in reaching a consensus

benefits of workplace diversity

- better use of employee talent

- increased understanding of marketplace

- enhanced breadth of understanding among managers

- better team problem solving

- lower costs related to turnover, absenteeism, and lawsuits

personal bias

- a bias is a tendency, inclination, or prejudice toward or against something or someone

- some biases are positive and helpful

- biases are negative when based on stereotypes rather than actual knowledge of an individual or circumstance

- use of bias is a cognitive shortcut and leads to prejudgements that can cause rash decisions or discriminatory practices

- includes unconscious bias, prejudice, discrimination, stereotypes, and ethnocentrism

unconscious bias

- attitudes or stereotypes that affect our understandings and actions without our conscious knowledge

- occur outside our awareness and despite good intentions

- many companies provide unconscious bias training to all employees to increase awareness

prejudice

- tendency to view people who are different as being deficient

discrimination

- acting out prejudicial attitudes toward other people who are targets of an individual's prejudice

stereotype

- a rigid, exaggerated, irrational belief associated with a particular group of people

ethnocentrism

- the belief that one's own culture is inherently superior to other groups/cultures

monoculture

- culture that only accepts one's own way of doing things and one set of values and beliefs

ethnorelativism

- belief that groups and subgroups are inherently equal

pluralism

- environment in which organization accommodates several subcultures

diversity initiatives and programs

- help companies to maintain a competitive advantage, improve employee morale, facilitate progress in new markets, increase creativity, and assist with effective recruitment and selection

why dei training doesn't work and how to fix it

- typical dei training doesn't educate people about bias and may even do harm

- shames trainees for holding stereotypes and focus on the law to scare people about risk of unchecked bias

- dei training should include training in strategies for cultural inclusion and teaching skills in listening, observation, and intervention

why managers need to understand individual behavior

- if one of a manager's functions is to lead, managers need to understand performance and individual behavior is a factor that impacts performance

self-awareness

- being aware of the internal aspects of one's nature, such as personality traits, beliefs, emotions, and perceptions

- better understand your own behaviors

- better understand how your patterns affect others

- better understand the behaviors of others

keys to self-awareness

- using self-assessment: reflection to gain insights into oneself

- seeking feedback to enhance self-awareness improves performance and job satisfaction

self-confidence

- general assurance in one's own ideas, judgement, and capabilities

self-efficacy

- an individual's strong belief that they can accomplish a specific task or outcome successfully

- one dimension of self-confidence

job satisfaction

- degree to which a person finds fulfillment in his or her job

- impacts absenteeism and turnover

- does not impact productivity/performance

- u.s. has 80% job satisfaction rate, number 3 globally

organizational commitment

- an employee's loyalty to and engagement with the organization

- trust is an important component

factors related to job satisfaction

1. job itself

2. learning/advancement opportunities

3. supervisor

4. co-workers

5. pay

perception

- cognitive process people use to make sense of the environment by selecting, organizing, and interpreting information from the environment

- your perception is your reality

perceptual distortions

- errors in perceptual judgement

stereotyping

- tendency to assign an individual to a group or broad category and then attribute generalizations about the group to the individual, based on truth

halo effect

- overall impression of an individual is based on one characteristic

attributions

- judgements about the cause of a person's behavior

internal attribution

- characteristics of the person caused the behavior

external attribution

- something in the situation caused the behavior

fundamental attribution error

- underestimating the influence of external factors and overestimating the influence of internal factors

self-serving bias

- giving too much credit to yourself for doing well and blaming external factors for failing

personality

- set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment

big five personality factors

- five general dimensions of personality

1. extroversion

2. agreeableness

3. conscientiousness - greatest indicator of job performance in terms of personality

4. emotional stability (neuroticism)

5. openness to experience

grit

- passion and persistence for achieving a long-term goal

authoritarianism

- power and status differences should exist within an organization

- extreme respect for authority and more likely to be obedient to those who hold power over them

machiavellianism

- intense focus on one's own interests and will manipulate, deceive, and exploit others to achieve one's goals

- being deceptive to get ahead

emotion

- mental state that arises spontaneously within a person based on interactions with the environment rather than through a conscious effort

emotional contagion

- tendency of people to absorb and express the emotions, moods, and attitudes of those around them

negativity bias

- human mind tends to react more quickly and strongly to perceived bad things than it does to good things

- negative people and events have a disproportionately large effect on our emotions and moods

- negative emotions also tend to spread more easily than positive ones

emotional intelligence

- ability to manage both your own emotions and understand the emotions of people around you

- may contribute to leader effectiveness

4 components of emotional intelligence

1. self-awareness - people in touch with their own emotions

2. self-management - ability to balance one's own moods and ability to control one's own disruptive or harmful emotions

3. social awareness - ability to understand others and practice empathy

4. relationship management - ability to connect to others and build positive relationships

stress

- individual's physiological and emotional response to external stimuli that create physical or psychological demands that exceed the individual's knowledge and abilities when important outcomes are at stake

resilience

- the capacity to persevere and to bounce back from adversity, conflict, and failure

challenge stress

- stress that challenges and increases one's focus, alertness, efficiency, and productivity

threat stress

- stress that is counterproductive

how to manage stress

- seek and eliminate key sources of stress

- find meaning and support in one's work

- meditate and manage one's energy

- find a work-life balance

leadership

- the ability to influence people toward the attainment of goals

peter drucker on managers vs leaders

- management is doing things right; leadership is doing the right things

- doing things right is effectively and efficiently

- doing the right things is choosing what we should be doing

managers vs leaders

- leaders chart the course, managers steer the ship

- leaders cope with change, while managers cope with complexity

contemporary leadership

- concept of leadership evolves as the needs of organizations change (always change in global marketplace)

- leadership has evolved due to technology, economic conditions, labor conditions, and social and cultural expectations

level 5 leadership

- from business bestseller, GOOD TO GREAT by Jim Collins

- 2 characteristics of a level 5 leader

- professional will: resolve to always continue

- personal humility: accept responsibility for failures and give credit for success to other people

level 5 hierarchy

- Level 1 individual - capable, contributes talent, skills, and knowledge (technical skills)

- Level 2 team member - contributing, works well in group (human skills)

- Level 3 manager - competent, manages team members and assets to reach goals

- Level 4 leader - effective, stimulates high standards, champions dedication to vision (conceptual skills)

- Level 5 executive - builds excellence through dedication and humility

servant leadership

- became popular due to moral decay of modern leaders

- based on the Bible

- leader assumes work exists for the development of the worker as much as the worker exists to do the work

- transcending self-interest to serve others, the organization, and society

- servant leaders give away power, ideas, information, recognition, credit, and money

authentic leadership

- type of leadership style in which people act in a real, genuine, and sincere way that is true to who they are

- by staying true to themselves, they inspire trust and loyalty of followers

gender differences in leadership behaviors

- women are rated higher at developing others, driving for results, inspiring and motivating others, and building relationships

- men and women are rated equally at solving problems and analyzing issues

based on the great man approach (1800s)

- theory that history can be explained by the impact of great men, or heroes who are highly influential and unique and because of their natural abilities including excellent leadership skills have a divine inspiration and major impact on history

- leaders are born not made - focus on leadership traits

- traits are distinguishing personal characteristics of a leader

- effective leaders are born with these traits and combine them with their strengths to achieve high levels of influence

10 most common traits among great managers

- strong work ethic

- honesty

- sense of humor

- confidence

- positive attitude

- good decision-making skills

- recognizes good works of others

- passionate about his/her job

- knowledgeable

- good grasp of entire business (conceptual skill)

- however, findings are that no set of traits is necessary and sufficient

behavioral approaches

- leaders' traits alone don't explain effective leadership

- instead of focusing on traits focus on actual leader behaviors

- 2 leadership behaviors: task-oriented and people-oriented

ohio state behavioral theory

- consideration (people-oriented): extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust

- initiating structure (task-oriented): extent to which the leader is focused on the task and directs subordinate work activities toward goal attainment

- said that leadership style is based on combination of these two behaviors but that no one style is consistently more effective than another

university of michigan behavioral theory

- compared the behavior of effective and ineffective supervisors

- employee-centered leaders (people-oriented): more effective, display supportive behavior to subordinates

- job-centered leaders (task-oriented): less effective, focus on meeting schedules, cost management, and production efficiency

- findings: job satisfaction is higher with employee-oriented leader

situational model of leadership

- focus on followers rather than leader

- looked at characteristics of followers in determining appropriate leadership behavior

- subordinates vary in readiness

- willingness: combination of confidence, commitment, and motivation

- ability: amount of subordinate's knowledge, experience, and demonstrated skill

- effective leadership style will depend on the willingness and ability of followers

charismatic leadership

- leader articulates a clear, appealing vision, and provides inspirational motivation to stimulate people to do more than they would normally do

- sources of their impact include:

1. lofty vision - ideal future that is credible yet not readily available

2. ability communicate the vision

3. ability to understand and empathize

4. empowering and trusting subordinates

transactional leaders

- individuals who clarify the role and task requirements of subordinates, initiate structure, provide appropriate rewards, and display consideration for followers

- the transaction consists of doing the work to get the reward